India Weekly Newsletter]
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India April 2 Weekly Newsletter 2012 This document covers news related to India with a special focus on areas like mergers & acquisitions, private equity & venture capital. Volume 127, April 2nd, 2012 For the period March 26, 2012 to April 1, 2012 April 2, 2012 [INDIA WEEKLY NEWSLETTER] Highlights Phillip Capital To Acquire MF Global Sify Securities India…(3) Germany Based STEAG To Acquire 5% In Content Pages Hinduja National Power…(4) TRF Acquires 49% Stake In York Transport Mergers & Acquisitions News 3-5 Equipment…(5) Mergers & Acquisitions Deals 5-8 Gruner + Jahr Acquires Digital Ad Network Networkplay …(6) Private Equity News 8-10 IMFL Maker Tilaknagar Industries Buys Four Private Equity Deals 10-13 Cos…(7) A2dc Acquires Gurgaon based Mobile Venture Capital News 13-14 Marketing Firm – Mobimasta…(8) Venture Capital Deals 14-16 Michael & Susan, Bellweather May Exit Ujjivan Financial…(9) CX Partners To Invest Rs200 cr in Sutures India…(10) Valiant Mauritius Invests In Shriram Housing Finance…(11) DTL Ancillaries Raises $10 mn From India Industrial Growth Fund…(12) SIDBI To Invest In CashPor Micro Credit…(13) Exotel Raises Funding From Mumbai Angels & Blume Ventures…(14) Nirvana Venture Buys 10% In Games2win…(14) Accel Partners Invests $2.8 mn in Cloud Firm Enterprise Nube…(16) Confidential LKP Securities Limited 2 April 2, 2012 [INDIA WEEKLY NEWSLETTER] Mergers & Acquisitions News Jindal Poly Films To Divest 60% in French Subsidiary - Jindal France SAS Jindal Poly Films Limited, a part of Rs3,000 cr BC Jindal Group is divesting 60% in Jindal France SAS. Pursuant to this disinvestment, Jindal France SAS and Rexor S.A. will cease to be subsidiaries of the company. In 2003-04, Jindal Poly Films acquired Rexor S.A. through its subsidiary company Jindal France SAS. Rexor S.A. manufactures Coated Films, Hot Stamping Foils, Security Threads, Tear Tapes etc. With the acquisition of Rexor in France, Jindal was able offer a full range of thin and thick BOPET films and BOPP film products required by large flexible packaging converters and end-users. Jindal Poly Films is involved in manufacturing of polyester films, polypropylene film, steel pipes and photographic products. Future Group May Acquire NCR Based Big Apple Chain Of Grocery Stores Future Group may acquire NCR based Big Apple chain of food and grocery stores. Though the exact valuation is not known, the final deal size could be close to Rs250 cr. Big Apple Chain is owned by Express Retail Services Ltd, a joint venture of Lalwani Holdings and the Chaurasia Group. It currently operates 65 stores in and around NCR. The company recently forayed into home delivery format under 'Day2Day' brand. With the new format, the company is eyeing a customer base of around two lakh families in Delhi and NCR in the next 30 months targeting revenues of Rs400 cr. Last year, the company also announced it's plans to the wholesale segment by launching a new format. The wholesale venture was to be launched by Thinkfresh International Pvt Ltd, a subsidiary of Express Retail Services. The company is talking to Japan’s Mitsubishi Corporation and Lawson for a stake sale in it's food sourcing business. Future Group is planning to form a holding company where his group’s stakes in the various operating companies will first get transferred and then the foreign partner will pick upto 49% stake. That would cover the food parks, the agri and dry grocery sourcing unit Future Agrovet, Future Farm Fresh, the fresh fruits and vegetables sourcing entity, private label divisions like Capital Foods and Future Consumer Enterprises, and the cash-and-carry distribution set-ups of Aadhar, and KB’s Fair Price stores. Phillip Capital To Acquire MF Global Sify Securities India Singapore based Phillip Capital is acquiring MF Global's India broking business in an all cash deal. The transaction is subject to regulatory and statutory approvals in the respective countries. MF Global Sify Securities India is a 70:30JV between MF Global and Sify Technology Ltd. It has been on the block after it's parent MF Global Holdings filed for bankruptcy protection in October last year. If this transaction goes through, it will be the second time that the ownership of the broker will change hands. It was initially set up as a JV between Refco Inc and Sify with the US firm holding 70% stake. MF Global acquired majority stake in the company in November 2005 after Refco filed for bankruptcy. MF Global has Confidential LKP Securities Limited 3 April 2, 2012 [INDIA WEEKLY NEWSLETTER] been in business since 1999. It offers online and offline equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions. Phillip Capital offers a full range of financial services including fund management, unit trusts, hedge funds, insurance planning, investment research and broking in bonds, securities, futures, foreign exchange, precious metals and commodities. Germany Based STEAG To Acquire 5% In Hinduja National Power Germany based energy major STEAG GmBH has agreed to acquire 5% stake in Hinduja National Power Corporation Ltd (HNPCL) through its subsidiary STEAG Energy Services GmbH. According to the agreement between the two entities, STEAG will have the option to invest in future power projects of the group. Besides, Hinduja group's power sector holding company Hinduja Energy India Ltd is forming JV with STEAG Energy Services (India) Pvt Ltd for operations and maintenance of various power projects in India. This JV will operate the Visakhapatnam plant of HNPCL and would also carry out operations and maintenance activities of new power projects in India. HNPCL's 1,040 MW coal-based thermal power plant is currently in advanced stages of construction for commissioning in 2013. Hinduja National Power Corporation Ltd promoted by Hinduja Group, is setting up a coal-based sub- critical thermal power plant of 1,040 MW (2X520 MW) in Vishakhapatnam. The total cost of the project is Rs5,545 cr which is being funded at a debt-to-equity of 3:1. The company has awarded EPC contracts for both Boiler-Turbine-Generator and Balance of Plant to Bharat Heavy Electrical Limited, which has a well-established track record in the field. The company has signed an agreement with Evonik Energy Services (India) Pvt. Ltd. for the Operation & Maintenance (O&M) to ensure efficient operations and high plant availability. Vijay Mallya May Sell United Breweries Stake To Heineken Tycoon Vijay Mallya, scrambling to raise funds to rescue his ailing Kingfisher Airlines Ltd, is considering the sale of all or part of his stake in United Breweries (UB), his flagship beer business, to Dutch brewer Heineken NV. They added that Mallya has the option of selling a stake in UB to ease his financial woes, and Heineken would be a keen buyer to gain control of India's biggest brewer and maker of Kingfisher beer. The Amsterdam-based brewer holds a 37.38% stake in UB as a legacy of its takeover of Scottish and Newcastle in 2008. The purchase of 13%, valued at $370 million at current market prices, would be enough to take Heineken over the 50% mark. Mallya owns around 19% of UB and has held talks with a number of different parties to try and raise cash for his ailing Kingfisher Airline. DTDC To Expand In West Asia Through Acquisitions Courier Services provider – DTDC is planning to acquire a company in West Asia for expansion. The company has set up joint ventures in Canada and China and also planning expansion in Australia in next two years. DTDC is also planning to strengthen the business by servicing e-commerce and other Cash-on-Delivery (COD) businesses specifically. Incorporated in 1990, DTDC Courier & Cargo Ltd is an Express distribution company in India covering both domestic and international services. It has a delivery network covering close to Confidential LKP Securities Limited 4 April 2, 2012 [INDIA WEEKLY NEWSLETTER] 10,000 Pin codes and international network spans over 240 global destinations supported by its own offices in US, UK, Dubai, Singapore, Canada, Bangladesh, Hong Kong, Sri Lanka, Nepal and Turkey. Bangalore headquartered DTDC has its Zonal offices in Bangalore, Mumbai, Delhi and Kolkata supported by 300 plus own offices and over 5400 channel partner offices spread across the country delivering over 100 million shipments every year. In the retail segment, DTDC will be opening many more stores offering multiple convenience services under one roof through the brand DTDC New World. GE India to acquire 70% stake in Advanced Systek US-based conglomerate GE will acquire controlling stake in Advanced Systek Limited that is engaged in offering terminal automation systems and flow metering solutions. GE is aiming to get new platform for GE Energy’s growth in South Asia and the Middle East. It is probably the first independent acquisition by GE India. Earlier in 2008, GE and Mexican industrial group Xignux together acquired majority stake in Chennai-based Indo Tech Transformers. GE is learnt to have acquired 60-70% stake from Advanced Systek promoters. According to the agreement, Advanced Systek promoters Umed Fifadra and Mukesh Kapadia and other top management team members will continue to remain on board of the company along with GE nominees. Vadodara-based Advanced Systek has headcount of 220, including 160 engineers. The company caters to HPCL, ONGC, IOCL, BPCL, RIL, IBP, Gail and Oil India among others. International Papers May Acquire Century Textiles' Paper Biz US based International Papers may acquire Century Textiles' paper business in India for about Rs2000 cr. Last year, it had acquired 53.5% stake in Andhra Pradesh Paper Mills at Rs1400 cr. It was at a huge premium to the then CMP of the company.